YEREVAN, MARCH 27, ARMENPRESS. The planned flat taxation of revenues under the upcoming Tax Code seek to ensure high salaries for people with high qualifications, while the certain issue of social inequality as a result of flat taxation will be solved as a result of future reforms in the property tax sector, PM Nikol Pashinyan said in parliament during a Q&A with lawmakers.

My Step Alliance MP Gevorg Papoyan said the planned increase in excise taxes under the planned reforms have caused problems for certain businessmen. He asked the PM to elaborate on his view regarding the taxation of carbonated drinks that are planned to be covered through excise taxation, as well as reforms in property taxes.

“Our government’s action plan stipulates that we will encourage the policy of high salaries. We don’t wanna struggle for someone to continue receiving 80 thousand drams salary, and for us to make them live good. There should not be cheap labor in Armenia. In Armenia there should be a highly qualified labor that is receiving high salaries. And we are reducing revenue taxes for high salaries in order to address this message. We want to become a technological country, but on the other hand we are taxing the technology sector salaries so much that no one will wanna invest. We must push people towards growing professional skills,” he said.

He said there is a false impression in Armenia as if highly remunerated employees are few in numbers. “There is an impression as if we are chasing those who are getting high salaries and as if we want to present them to be a social polar, as if they are the wealthy. I would like to announce with all responsibility – no one is rich or moreover wealthy by salary in Armenia”.

Pashinyan said the government intends to commence property tax reforms from January 1, 2020 simultaneously.

He said it is related with the intention to introduce the flat taxation. “We are changing the property tax system in a way that through property tax itself this social taxation fairness happens”.

Edited and translated by Stepan Kocharyan